WiseTech Global, an Australian software solutions provider for logistics companies, has successfully floated on the ASX, opening at $3.41, 2% higher than its IPO price of $3.35.
Its share price has closed at more than 10% since it started trading, hitting a high of $3.89, giving it a market cap of around $1.2 billion. The broader ASX was flat in trade.
Roughly 16% of the company was floated, with 50.03m shares in total. A few local investors originally believed the price to be too high.
The value makes WiseTech’s listing the second largest tech IPO on the ASX to date, following that of the MYOB Group, which raised $US668 million.
WiseTech has been profitable for more than a decade, according to CEO Richard White, who also holds close to 50% of the company’s shares.
White started the company from his basement in the 1990s with only four staff and a credit card. Its core product is software package CargoWise One, which lets freight and shipping companies companies keep track of their goods.
WiseTech has forecast revenue of $102 million and a $13 million net profit for the 2016 financial year, and is forecasting growth of about 32% over the following financial year.
A recent major contract win with DHL adds to WiseTech’s other big clients, which include Australia Post and Toll.